WITH OUR INFORMATION-PACKED PDF, PREPARE FOR HUMBER COLLEGE PREX-1060A EXAM QUESTIONS

With Our Information-Packed PDF, Prepare for Humber College PREX-1060A Exam Questions

With Our Information-Packed PDF, Prepare for Humber College PREX-1060A Exam Questions

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Humber College Exam 4: Invigilated Theory Exam Sample Questions (Q105-Q110):

NEW QUESTION # 105
When a farm is sold, there are exemptions to the payment of harmonized sales tax (HST). In which of the following circumstances is a farmer responsible to pay HST to the copyright Revenue Agency (CRA)?

  • A. The farm is sold to a corporation and the HST is included in the selling price.
  • B. The farmer sells the farm to a relative.
  • C. The farmer uses a smaller portion of the farm for a residence.
  • D. The farm has been used for personal use.

Answer: D


NEW QUESTION # 106
A buyer should consider the record of site condition (RSC) document when purchasing a commercial property. Which of the following statements regarding an RSC is correct?

  • A. With other documents, it will inform the buyer of any legal issues attached to the title.
  • B. It contains records pertaining to a property's financial condition.
  • C. Requesting an RSC is mandatory in all real estate transactions.
  • D. It is not a material fact; thus, it is a formality for the buyer to get it.

Answer: A


NEW QUESTION # 107
Which of the following is NOT relevant information a salesperson must verify when representing a landlord who is planning to lease their industrial property?

  • A. The salesperson must verify the zoning information for the industrial property.
  • B. The salesperson must verify the rates and terms of lease for the property.
  • C. The salesperson must verify whether the tenant's intended use for the industrial property is permitted under the zoning bylaw.
  • D. The salesperson must verify the previous tenant's lease rates and terms.

Answer: D


NEW QUESTION # 108
In regard to the adjusted book value/asset valuation method of valuing a business, which of the following is correct?

  • A. The adjusted book value method should not be used when the sale of a business is being implemented or is under consideration.
  • B. The adjusted book value method takes goodwill into account when establishing the value of a business.
  • C. A company's adjusted book value should be equal to the actual market value of the business.
  • D. A company's adjusted book value is entirely unrelated to its net worth.

Answer: B


NEW QUESTION # 109
A buyer wants to purchase an industrial property for its international logistics and distribution center.
Currently, the building is used by a local courier company with small delivery trucks and vans. When drafting an offer to purchase this property, which of the following should be added regarding this change of use?

  • A. A clause to ensure the truck parking spaces and turning radius are sufficient
  • B. A clause to test the quality of the underground water source
  • C. A clause to check the condition of the trucks and vans
  • D. A clause to obtain the necessary mortgage amount

Answer: A


NEW QUESTION # 110
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